SEBI's New UPI Mandate for Retail Investors in Public Debt Issues
| Aspect | Details |
|---|---|
| Regulatory Body | Securities and Exchange Board of India (SEBI) |
| New Guideline | Mandatory use of UPI to block funds for retail investors applying for public debt issues up to ₹5 lakh. |
| Effective Date | November 1, 2024 |
| Applicable Instruments | Non-convertible redeemable preference shares, municipal debt securities, securitized debt instruments. |
| UPI Mandate | Required for applications through intermediaries for amounts up to ₹5 lakh; other payment methods still available via stock exchange platforms. |
| Bank Account Linking | Investors must provide UPI-linked bank account details in application forms. |
| Shorter Review Periods | Public comment period reduced to 1 working day for issuers with listed securities, 5 days for others. |
| Flexibility in Price Band | Issuers can extend bidding period by one working day for price band or yield revisions. |
| Minimum Subscription Period | Reduced from 3 days to 2 days. |
| Alternative Payment Options | Investors can still use Self-Certified Syndicate Banks or the stock exchange platform. |